The

December

cash records of

DonaldDonald

Insurance follow:

Cash Receipts			Cash Payments
Date	Cash Debit		Check No.	Cash Credit
Dec. 4	$4,250		1416	$790
9	460		1417	120
14	540		1418	690
17	1,950		1419	1,590
31	1,880		1420	1,450
			1421	1,300
			1422	650

(Click the icon to view the checkbook.)

DonaldDonald's

Cash account shows a balance of

$16,290

at

December

31

On

December 31,

DonaldDonald

Insurance received the following bank statement:

Bank Statement for December
Beginning Balance						$13,800
Deposits and other Credits:
	Dec.	1		EFT	$350
	Dec.	5			4,250
	Dec.	10			460
	Dec.	15			540
	Dec.	18			1,950
	Dec.	22		BC	1,200	8,750
Checks and other Debits:
	Dec.	8	NSF		1,100
	Dec.	11	(check no. 1416)		790
	Dec.	19		EFT	840
	Dec.	22	(check no. 1417)		120
	Dec.	29	(check no. 1418)		690
	Dec.	31	(check no. 1419)		1,950
	Dec.	31		SC	25	(5,515)
Ending Balance						$17,035
Explanations: BC-bank collection; EFT-electronic funds transfer;
NSF-nonsufcient funds checks; SC-service charge

Additional data for the bank reconciliation follow:

a.	The EFT credit was a receipt of rent. The EFT debit was an insurance payment.
b.	The NSF check was received from a customer.
c.	The $ 1 comma 200$1,200 bank collection was for a note receivable.
d.	The correct amount of check number 1419, for rent expense, is $1,950. DonaldDonald's controller mistakenly recorded the check for $1,590.

(Click the icon to view the additional information.)Read the requirements

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.

Requirement 1. Prepare the bank reconciliation of

DonaldDonald

Insurance at

DecemberDecember

3131,

20162016.

Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation.

Donald Insurance

Bank Reconciliation

December 31, 2016

Bank:

Balance, December 31, 2016

ADD:

LESS:

Books:

Balance, December 31, 2016

ADD:

LESS:

Requirement 2. Journalize any required entries from the bank reconciliation. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Begin with the EFT collection.

Date			Accounts and Explanation	Debit	Credit
Dec. 31

Journalize the collection of the note.

Date			Accounts and Explanation	Debit	Credit
Dec. 31

Journalize the NSF check.

Date			Accounts and Explanation	Debit	Credit
Dec. 31

Journalize the EFT payment.

Date			Accounts and Explanation	Debit	Credit
Dec. 31

Journalize the service charge.

Date			Accounts and Explanation	Debit	Credit
Dec. 31

Journalize the entry to correct the error.

Date			Accounts and Explanation	Debit	Credit
Dec. 31